Idaho’s Tax Reimbursement Incentive Reaches $1.27 Bil
NEWS RELEASE: For Immediate Release
Contact: Megan Ronk
Idaho Commerce
208.334.2470
megan.ronk@commerce.idaho.gov
Idaho’s Tax Reimbursement Incentive Reaches $1.27 Billion in Total Payroll in First Year
16 companies expand in Idaho due to new “game changing” tax incentive
BOISE, Idaho—Tuesday, June 30, 2015—Only one year since the inception of the new Idaho Tax Reimbursement Incentive, 16 business expansion projects have been approved adding over $1.27 billion in new payroll to the state.
“The Tax Reimbursement Incentive has truly been a game changer for the state to attract new businesses and grow existing Idaho businesses,” said Idaho Governor C.L. “Butch” Otter. “The first year of TRI has surpassed our expectations, and I look forward to seeing how this tool continues to help accelerate Idaho’s economy.”
The Tax Reimbursement Incentive (TRI) is a post-performance incentive that offers a refundable tax credit of up to 30% on income, payroll, and sales taxes for up to 15 years. In order to qualify, companies must create at least 50 new jobs in an urban community – or 20 in a rural community – with wages above the average county wage.
During the first year, the Idaho Economic Advisory Council approved 16 TRI projects with a total of 3,177 new jobs committed throughout the state. With an annual average wage of $44,400 – well above the statewide average of $36,152 – the TRI has proven to be an effective tool in not only recruiting new companies to the state, but also in encouraging existing Idaho companies to expand. In its inaugural year, TRI supported the growth of seven existing Idaho companies and was a key factor in recruiting nine new companies to the state.
The lower job requirement in cities with less than 25,000 in population has also made TRI an important economic development tool in rural areas, with 50% of the approved TRI projects located in rural communities. The incentive has been utilized to support companies in a wide range of industries including: advanced manufacturing; aerospace; food production; back office and shared services; software and technology; and travel and tourism.
Collectively, the 16 TRI projects are anticipated to generate over $211 million in new tax revenue to the state, with an overall return investment of $7 for every $1 in TRI value awarded.
“Getting the TRI approved by the Governor and Legislature was the easy part – the more challenging aspect of TRI has been developing a program that is fair, equitable and transparent,” said Idaho Commerce director Jeff Sayer. “I believe we have developed a strong process that has been well received by the business community and simultaneously protects the state’s interest in making sure the promised jobs are delivered.”
Following are highlights of several TRI approved projects.
Kochava
Kochava is an existing Idaho technology company located in Sandpoint. The company provides mobile advertisers – including high-profile companies like Microsoft, Netflix, Pandora, Yahoo and Priceline.com – with precise data analytics of their app promotion campaign. In addition to high-wage technology jobs that pay an average of $60,000 per year, the company expansion came at a critical time in the community following the bankruptcy and closure of a major employer, Coldwater Creek.
About the company’s decision to expand in Sandpoint, Kochava CEO Charles Manning said: “I don’t believe Kochava’s success as a growing company thriving in a community like Sandpoint is an enigma. The list of advantages that amenity-rich cities like Sandpoint offer range from employee retention to incredibly cost-effective office space. Combine these advantages with the State of Idaho’s low-cost business environment and it all adds up to a solid business decision for our company.”
Fabri-Kal
Fabri-Kal Corporation, an advanced manufacturing company of plastics thermoforming, broke ground in March 2015 on a $50 million project that will result in a new 100,000-square-foot design and manufacturing facility in Burley.With plans to be fully operational in the fall of 2015 and ultimately ramp up to 150 employees, Fabri-Kal provides a valuable component of the food processing supply chain through its production of packaging and food service products. In addition to producing all of the yogurt cups for Chobani, the company also plans to produce a new plant-based ag-fiber material in its Burley plant. The Fabri-Kal Greenware packing line will provide sustainable packaging solutions in the foodservice, consumer product and retail markets.
“Development of the new manufacturing facility in Idaho is a strategic effort that supports Fabri-Kal’s growth plans, continued focus on innovation and providing solutions to our customers and partners,” said Mike Roeder, president and chief operating officer at Fabri-Kal.
Amy’s Kitchen
Amy’s Kitchen, the nation’s leading maker of organic convenience food, opened its Pocatello facility in December 2014, adding to Idaho’s growing list of world-class food processing companies. The company purchased the 500,000 square-foot facility formerly operated by Heinz that had closed earlier in the year, leaving hundreds of local families in a difficult situation without employment.
With the Tax Reimbursement Incentive as a key factor in the decision to locate in Idaho, Amy’s Kitchen plans to hire over 1,000 employees that will have access to on-site health clinics and scholarship opportunities for employees’ children. The company will also provide opportunities to local growers.
Amy’s CFO, Mark Rudolph, expressed gratitude for the assistance and support that Amy’s received from the Governor’s Office and local leaders. “We are thankful for the extensive support and warm welcome to the state,” said Rudolph.
The complete list of Year 1 (Fiscal Year 2015) approved Tax Reimbursement Incentive projects follows:
| Company/Project Name | City | Job count |
|---|---|---|
| SkyWest Airlines, Inc. | Boise | 100 |
| ATC Manufacturing, Inc. | Post Falls | 225 |
| Kochava | Sandpoint | 208 |
| Amy’s Kitchen | Pocatello | 1,000 |
| Diversified Fluid Solutions, LLC | Boise | 50 |
| Project Pipe | Pocatello | 80 |
| Glanbia, Plc | Gooding | 43 |
| Aspen Skiing Company | Ketchum | 57 |
| Gayle Manufacturing Company | Caldwell | 105 |
| Project Aerospace | Hayden | 134 |
| Fabri-Kal | Burley | 150 |
| Project 204 | Boise | 300 |
| User Interface User Experience (UiIUx) | Ketchum | 88 |
| Project Burbank | Boise/Meridian | 500 |
| Project It Happened | Ketchum | 109 |
| Project Steel 2 | Hayden | 28 |
To learn more about Idaho’s Tax Reimbursement Incentive and view the full list of projects with detailed information, visit the Idaho Commerce website: https://commerce.idaho.gov/idaho-tax-reimbursement-incentive.
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